Home Depot (NYSE:HD) Updates FY 2026 Earnings Guidance

Key Points

• Home Depot updated its FY 2026 guidance, projecting EPS of $14.69 to $15.28 and revenue of $168.8 billion to $172.1 billion. Both ranges are slightly below or around Wall Street expectations.
• The company’s most recent quarter came in a bit ahead of estimates, with EPS of $3.43 versus $3.42 expected and revenue of $41.77 billion versus $41.59 billion forecast.
• Investor sentiment is mixed: analysts still see upside potential, but several firms have cut price targets or warned that sluggish demand, housing weakness, and margin pressure could weigh on results.

Home Depot (NYSE:HD - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 14.690-15.278 for the period, compared to the consensus EPS estimate of 15.050. The company issued revenue guidance of $168.8 billion-$172.1 billion, compared to the consensus revenue estimate of $171.2 billion.

Home Depot Stock Up 0.8%

NYSE HD opened at $299.98 on Tuesday. The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06. The company has a market capitalization of $298.79 billion, a P/E ratio of 21.08, a P/E/G ratio of 3.43 and a beta of 1.00. Home Depot has a one year low of $296.88 and a one year high of $426.75. The stock has a 50 day moving average price of $330.53 and a 200-day moving average price of $353.57.

Home Depot (NYSE:HD - Get Free Report) last released its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, topping analysts' consensus estimates of $3.42 by $0.01. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The business had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts predict that Home Depot will post 15.03 EPS for the current fiscal year.

Home Depot Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were paid a $2.33 dividend. The ex-dividend date was Thursday, March 12th. This is a positive change from Home Depot's previous quarterly dividend of $2.30. This represents a $9.32 annualized dividend and a dividend yield of 3.1%. Home Depot's dividend payout ratio (DPR) is 65.50%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Guggenheim lifted their price target on Home Depot from $400.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, February 25th. Piper Sandler reduced their target price on Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a research report on Friday. Royal Bank Of Canada lifted their target price on Home Depot from $363.00 to $377.00 and gave the company a "sector perform" rating in a research report on Wednesday, February 25th. Oppenheimer reduced their target price on Home Depot from $405.00 to $310.00 and set a "market perform" rating on the stock in a research report on Monday. Finally, Citigroup reduced their target price on Home Depot from $450.00 to $400.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $401.34.

Insider Activity at Home Depot

In related news, CFO Richard V. Mcphail sold 2,550 shares of the company's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the completion of the sale, the chief financial officer directly owned 44,566 shares of the company's stock, valued at $16,439,951.74. This represents a 5.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.08% of the company's stock.

Key Headlines Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Some analysts still see upside potential, with Barclays remaining constructive on Home Depot amid improving fundamentals and easier comparisons, while other commentary suggests the company could benefit if housing activity stabilizes. Barclays Bullish on Home Depot Inc. (HD) amid Improving Fundamentals and Comparisons
• Positive Sentiment: Several previews argue the upcoming earnings report could reveal stronger-than-expected performance and potentially reset expectations higher if Home Depot shows resilience in sales and profitability. Home Depot's Next Earnings Report on May 19 Could Send the Stock Soaring. Here's Why.
• Neutral Sentiment: Wall Street expects a big post-earnings move, with options traders pricing in a sizable swing around the results, but that reflects uncertainty rather than a clear directional catalyst. Home Depot (HD) Stock Options Traders Are Pricing In a $15 Price Swing after Earnings
• Negative Sentiment: Piper Sandler said demand trends remain sluggish and trimmed its price target slightly, reinforcing concerns that Home Depot’s near-term sales growth could stay muted. Home Depot (HD) Faces Sluggish Demand Trends, Says Piper Sandler
• Negative Sentiment: Oppenheimer cut its price target sharply to $310 and moved to a market-perform rating, signaling more caution ahead of earnings as investors worry about housing weakness and consumer pressure. Semi And Options Mania Collide With Bond Rout Ahead Of Earnings From Nvidia, Home Depot, Walmart
• Negative Sentiment: Multiple previews say Home Depot may lower full-year guidance when it reports, which would likely pressure the stock if management confirms softer demand and margin headwinds. Home Depot, Lowe's Seen Trimming Full-Year Outlook as Macro Pressures Build, Oppenheimer Says

Institutional Trading of Home Depot

A number of hedge funds have recently added to or reduced their stakes in HD. Advocate Investing Services LLC acquired a new stake in shares of Home Depot in the 4th quarter valued at approximately $25,000. Parvin Asset Management LLC boosted its holdings in Home Depot by 110.0% in the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after acquiring an additional 33 shares during the last quarter. Imprint Wealth LLC acquired a new position in shares of Home Depot during the third quarter worth about $34,000. Triumph Capital Management acquired a new position in shares of Home Depot during the third quarter worth about $40,000. Finally, Binnacle Investments Inc lifted its stake in shares of Home Depot by 28.8% during the second quarter. Binnacle Investments Inc now owns 143 shares of the home improvement retailer's stock worth $52,000 after purchasing an additional 32 shares in the last quarter. 70.86% of the stock is owned by institutional investors and hedge funds.

About Home Depot

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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